Trio convicted in massive health care fraud scheme

Three health care providers from Oakland and Macomb counties were convicted of health care fraud and drug distribution for their roles in a massive prescription-drug operation.

Podiatrist Anmy Tran, 42, of Clinton Township, and psychologist Sanyani Edwards, 34, of Southfield, were convicted Wednesday of all three offenses with which they were charged, following a three-week trial in U.S. District Court in Detroit. They were guilty of conspiracy to commit health care fraud, distribution of controlled substances and payment or receipt of health care kickbacks, according to U.S. Attorney Barbara McQuade of the Detroit office.

Pharmacist Mitesh Patel, 39, of Troy, in the same trial was convicted of six of seven charges — two counts each of health care fraud and controlled substances distribution, and one count each of conspiracy to commit fraud and distribute drugs, the feds say in a press release.

“We hope that prosecutions like this one will deter medical professionals from stealing taxpayer funds intended for health care,” McQuade says in the release.

Federal officials say that the trio is the last of all 26 defendants convicted as part of a scheme headed by pharmacist Babubhai Patel of Canton, who controlled more than 20 pharmacies in metro-Detroit that engaged in fraud, kickbacks and prescription drug diversion. Babubhai Patel is serving a 17-year prison term for convictions last August following a trial. Seventeen of the defendants pleaded guilty. The 26 defendants were charged in August 2011.

An indictment charging 13 more defendants was unsealed in March, and their trials are set for January, federal officials say.

According to federal officials, evidence in the recent trial showed that Tran received bribes and kickbacks from Babubhai Patel in exchange for Tran writing prescriptions for expensive medications without regard to medical necessity. Mitesh Patel billed Medicare, Medicaid and private insurance companies for medications never given to patients. Edwards paid bribes and kickbacks to doctors, nurses and assisted-living facilities in exchange for referrals of prescriptions to the ringleader’s pharmacies, officials say. Edwards also worked with a corrupt psychiatrist to write fictitious patient prescriptions that were billed at Babubhai Patel’s pharmacies.

The case was prosecuted by U.S. Assistant Attorneys John Neal and Wayne Pratt.

Also involved in the case was the Drug Enforcement Administration, FBI, and Department of Health and Human Services Office of Inspector General.